Journal Article

Natural capital accounting for better policy

Vardon, Michael, Ahlroth, Sofia, Bass, Steve, Ruijs, Arjan

2019

Overview

A growing number of countries is setting up natural capital accounts (NCA) based on the system of environmental-economic accounting (SEEA); however, actually using them for better policy making turns out to be complex. This paper synthesises lessons on the institutional mainstreaming of the SEEA and its use in improving policy decisions affecting natural capital. It draws on discussions held at two Policy Forums organised by the World Bank Wealth Accounting and Valuation of Ecosystem Services program and the United Nations Statistical Division. Practical examples of how the SEEA helps to improve policy making are explored. Emerging from the Forums were ten principles for making NCA fit for policy. These principles promote a comprehensive NCA organisation, a purposeful use of accounts, trustworthy methods and institutionalisation of NCA mechanisms in government. To put these principles into practice, six strategies are outlined: (1) assure credibility of the accounts; (2) align supply and demand for NCA; (3) assure high level support for NCA; (4) encourage cooperation between institutions so NCA and policy are mutually constructive; (5) provide evidence that natural capital is economically important and; (6) assure policyrelevant communication of NCA results.

• Publisher: Springer Science + Business Media,Springer Netherlands,Springer Nature B.V
• Subject: Accounting / Atmospheric Sciences / Earth and Environmental Science / Ecology / Economic importance / Ecosystem services / Environment / Environmental accounting / Environmental Engineering/Biotechnology / Environmental Management / International cooperation / issues and policy / Mainstreaming / natural capital / Physical Geography / Policy making / REVIEW / Supply & demand / supply balance / Trustworthiness / United Nations / Valuation / Wealth / World Bank